Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-03-11

oNoSN >" AAsuoluS IdluOau anu OlueT ScCuIlGlcS
ne saia: u understand that the syndicate is
made up, and that Mr. Sully told nearly the whole
Crutn When he authorized the announcement in
r1e Mem rosK Tines 1s he was perhaps little
oGneI purpose that he had in view There is little
aouot that an advance payment OF 81, ,OOO, 600 has
In int the negotiations were started to head of the
enects OF Sully's previOusness. The peculiar
feature OF this whole transaction is that the West
OF which much has been heard lately in connec-
tiOn WIN MT Sully, is at the front as the pur-
cnaser ana future owner Of the great Baltimore
anu oWo. Ihe Baltimore and Ohio is the only
SOlVent corporation that will be merged in the
huge concern from New York to the far south
richmond and Danvflle, or East Tennessee, Vir-
ginia and Georgia have record as solvent con-
Germs The Baltimore and Ohio may, however,
serve 10 leaven the whole. The next move will
probably be for an issue OF stock OF the new con-
cern GER 10 cover the amount Of money represented In
the unfolding OF the scheme. Tie much-referred-
70 surplus or $4SOOOO 600 invested in properties of
tne company, and not represented by stock or
Donus, Is an amount double the valve OF the whole
capital stock at $2OOa SHARE which are the figures
at which the stock Is said to be voted In the sndi-
Gase; tSs Inen tnere is the telegraph company and
Inc express company and other properties owned
by the Baltimore and Ohio. No wonder that Mr.
SulIy should say that he has secured a control OF
fully cheap There is said to be good deal of
talk that large holders OF bonds that were aoated
In Dig blocks in New York, Philadelphia and Bal
$2500OOO car-trust loan about 100000 have
been taken in this city by Institutions and trusts
Ihe premature exposure OF the plans by MIR. Sully
mas gwen little opportunity for the discussion Of
the situation"
'THE KERNELS OF FACT"
The &tn also gives what is claimed to be the
Kernels OF fact sifted from the chaff which has
been afoat the past few days, as follows: Gar
rangements have been made by the Baltimore and
fhn fvxnn r<I
other railroad properties for the consolidation of
the several roads into one system, which is to
commence at New York and extend by way OF the
Baltimore and Ohio to the Gull OF Mexico in the
south. Mr.. Garrett is to put into this syndicate
majority OF the s15, 600 600 OF the stock Of the
Baltimore and Ohio at an agreed price To secure
this amount he has the Garrett holding of over
10000 shares, and has obtained the option OF
one-haH OF 1900 shares OF the stock held by
the Messrs Gregg, some 900 or ZOO sharesa h and ID
that OF the BurnSeS, 1000 shares. This with
other @ stock that he has In sight, viii make up the
taking up options on all the stock that is offered
he has not yet made OvertureS the 2 600 shares
held by the city of Baltimore. This interest OF
the city IS one OF the serious questions before the
people. The causes that have led the Bal.
timore and Ohio to take this step were practically
OF yesterday from an Official Of that company. It
mas Duit It's line to Philadelphia at large cost and
Is checkmated there, and cannot get to New York
Ine Pnlla0elph1a extension and the construction
inside OF Philadelphia are reported to have cost
$2O,OOO,OOO. This has been and is in effect unnro
ducttve. The money to build this road was bor-
rowed before its construction was commenced.
Inc new railroad combination will make this S,O-
100000 productive and the transfer Of the control
ing STOCK 10 syndicate Will secure the funds to
pay on floating debt that is alleged to be OF
some proportions. The Baltimore and Ohio viii
lose lts Identity as such, and will become an 1nte
graz part OF great concern that Is not yet named
NJ. GarrettS part In the deaP is ready TO be
played, and when the parties OF the other part
comply Win the terms the agreement will go into
2nn1Frpnt a ho Don ,cr,,,-o
ROAD people do not like the new order OF things"
DEFENSE OF Mr. GARRETT
friend OF Mr.. Garrett is quoted as saving. re.
garding the adverse comment in Baltimore on
the 'deal:" sit has been tterated and reiterated
at If the road passed under the control OF Mr..
eventually but way-statfon between the west
ern and southern cities and those north of us:
that traffic would be diverted, and thereby our
mercantile interests would suffer greatly This
apprehension should be very readily quoted. II
the new deal Is cOnSummated Baltimore Will he
placed IN trailc communication with all the great
cities OF the west southwest and the south with
which It never had direct rail communication be-
fore. The new syndicate controls a system of
and from ST. Louis to the same point. In addition
to the 6,7OO miles OF track in the south From
all these sections new trade will be brought TO
Baltimore that never would have reached here
under The Old management. Whatever the
and o., with the aid OF Its new connections can
bring to the city OF Baltimore, it will bring that
traf1lc at lower rate than the same kind Of traf
1c is transported to New York
BALTIMORE TO BE HEADQUARTERS OF THE CONsOLI.
DATIoN.
This city Will be the center and Headquarters of
this great combination, and it may be stated that
Mr.. Robert Garrett, who has shown himself able
not only to achieve the elder Garretts large pur-
poses, put also TO extend and supplement them
wisely according 10 the exigences of changing cir
cumstonces, will be made the chief executive head
II heW1ll accept the position.
''There is no doubt about the n1ans rorashado1ved
ABOVE being carried out as soon as Mr. Sully and
ms friends can raise the sum agreed upon to pay
OF his company. Already Mr CARROTS friends are
securing proxies for him. and by the time the New
9or5 parties rte are ire, ready with their cash Mr.
already, a sufficient amount OF stock to give
the new managers control of the B. and o.
OF the road, but VIII protect them by allow.
ing them 10 transfer their stock upon the same ad-
yantageous terms that he has offered his under
ment that has been made with Mr. Sully. all the
omcefS ana employees OF the company are to retain
their positions as at present and Mr. Garrett VIII
remain president OF the company
au. Is very nkeiy that the new combination will
opear%ass a % us own expresses, telegraphs, sleeping
has managed SO satisfactory He has demon
straaea tnaI the results OF operating its own sleep
ing cars t nave Deen 81 per cent better than when
unueI Ihe contract Qf the Pullman company, and
the gain to the b. and O. by operating its own ex-
peresses has been 81 per cent over the period
WIN CAAO AAuCS WcEc COuGrOuoQ Dy the ADAMS a00
other companies"
THE TALK IN NEW YORK.
In New York yesterday rumors were In circula-
ton that owing to premature publication the big
railroad "deal" was of. Mr.. Alfred Sully himself
was quoted as denying that there was truth In the
runors, IN Iaco OF the fact that he was known to
nave authorized the statement In the New York
Tunes; Sul!ys denial, according to New York
M 1acI enat az Yesterdays meeting Of the Richmond
Iermlnai directors he was hauled over the Goals
Ior naV1ng gwen away the deal prematurely. II is
represented that some OF Mr. Sully'S associates
were very angry with him, and some are undoubt-
eoiy Jealous OF the fact that he is getting all the
cteOC OF having engineered the remarkable deal.
CalVM .. br1ce seems to be more diSpleaSed than
any one else. He gives different version OF the
zeal frOm that which has heretofore been enter
talned He says that the premature publications
regarding the deal
NAY PREVENT XR. GARRETT FROM GETTING T0GETHRR
ENOUGH STOCK FOR CONTROL,
In case he should wish TO SELL He says the B. and
o. may not come into the scheme now unless It
can have control OF the southern roads, to which
Richmond Terminal would object. He does not
Deneve that Mt. Garrett has purchased the Johns
Hopkins untver1ty interest, and thinks the city OF
baltlmOre win not allow the road to go into the
nan0s OF New York parties. He also dOuDteQ
Whetner MI. Garrett intends that the sale Sh0um
be anything but q nominal one, made for the pur.
pose OF amalgamating his system with the Rich